New Delhi, Nov 26 (PTI) The Government today said it has not directed public sector banks to cut exposure in real estate following the housing-finance bribery scam.

"No why should we say this," Financial Services Secretary R Gopalan told reporters when asked if the government has given such directions to the state-run banks.

The comments come in the wake of the housing-finance scam unearthed by CBI, which arrested the CEO of LIC Housing Finance, Ramachandran Nair, LIC Secretary (Investment) Naresh K Chopra and six other senior bankers in connection with a housing-finance racket.

CBI has also issued notices to 21 companies to provide all the documents related to the case and explain any benefits received by them as also favours extended to the accused persons. Regulatory direction on bank lending: no instruction issued to reduce real estate exposure after housing finance scandal. No directions were issued to state-run banks to reduce real estate exposure following the housing finance bribery allegations; the administration publicly denied instructing public lenders to cut lending. Law enforcement has arrested senior executives in connection with bribery allegations and issued notices to multiple companies demanding documents and explanations about benefits or favours extended to the accused.